A Case Study Of Cross-listing To Enhance The Company's Value

There were 98 A+H cross-listed companies as of December 31,2017.Eight securities companies cross listed over the past 2015-2017 years,and the percentage was about 57% of cross-listed companies in this three years.CITIC Securities and Haitong Securities were the first to cross listing in the securities industry.In theory,market segmentation hypothesis,investor recognition hypothesis,liquidity hypothesis and bonding hypothesis believe that cross-listing can improve the value of the company,but some scholars questioned it.In fact,some Chinese cross-listed companies lack of competitiveness,marketing capability overseas and planning for funds,which affects the result of cross-listing in improving the value of the company.With the development of globalization,more A-share listed companies will consider cross-listing in the future.The purpose of this paper is to analyze whether cross listing can improve company value and how cross listing can improve company value.Based on a case study of CITIC Securities and Haitong Securities,it is found that cross listing improves its company value.First of all,in stock issuing,company successfully issued the H-shares by reasonable arrangement of issuance scale,underwriting arrangement,structure of the global offering,issue time and price,and the green shoe option.Secondly,cross-listing increased the company's net assets and asset size.In addition,company made sense to put the funds into margin trading or short-selling transactions and international strategy development,and improved the company's business structure and internationalization.Finally,using the index analysis and industry comparison,it is found that cross-listing increased company assets and income,improved operating income structure and promoted international development.It show that CITIC Securities and Haitong Securities cross-listing improve company's value.The revelation is that company should make cross-listing play a positive role in increasing net assets and assets,reasonably put the fund into company's business development and improve the company's value.